Rosenberg & Estis Secures Appellate Division Victory Denying Yellowstone Injunction

7/22/20

Rosenberg &Estis, P.C. has secured a victory in the Appellate Division, First Department, of State Supreme Court on behalf of 35 West Realty Co., LLC. The Appellate Division unanimously affirmed State Supreme Court Judge Andrew S. Borrok’s order denying plaintiff’s motion for a Yellowstone Injunction in a case regarding failure to carry adequate insurance.

Warren A. Estis, Norman Flitt and Michael E. Feinstein, members of Rosenberg &Estis, represented 35 West Realty Co. LLC at the State Supreme Court and at the Appellate Division.

In the underlying case, the property owner took action against the tenant, Booston LLC, for failure to carry the insurance required by the lease. The tenant failed to cure and the lower court denied the tenant’s application for a Yellowstone Injunction, leading to the appeal.

“This order reinforces property owner rights in cases when tenants default on insurance requirements under the lease,” said Estis. “Tenants have limited ability to cure insurance defaults, providing property owners a clear avenue to lease enforcement.”

This decision follows several other recent high-profile litigation results by the firm, including the New York State Court of Appeals ruling that Part F of the Housing Stability and Tenant Protection Act of 2019 may not be applied retroactively to rent overcharge cases. The firm also secured a major court victory against Amazon on behalf of The Durst Organization, obtained a unanimous dismissal of a multi-million dollar damages claim, won a critical case on a rent overcharge case, and a variety of other cases with industry-wide significance.

About Rosenberg &Estis, P.C.

Founded in 1975, Rosenberg &Estis, P.C. is widely recognized as one of New York City’s pre-eminent real estate law firms. R&E provides full-service representation and advice in every aspect of real estate, from performing due diligence and evaluating financing, to handling joint ventures, acquisitions and leasing, construction and design team agreements, property tax exemptions and abatements, land use and zoning matters, Real Property Income & Expense (RPIE) filings, co-op and condo offering plan filings, distressed situations and bankruptcies, as well as the litigations and negotiations which sometimes ensue when deal-making. R&E’s wealth of experience in New York real estate makes it the ideal thought partner for owners, developers, not-for-profit corporations, educational institutions, sponsors, equity investors and lenders in both real estate transactions and in all court venues.